Insurance provider Chubb has released a new whitepaper examining the increase in regulatory and compliance requirements and the resulting challenges for underground storage tank owners and operators seeking to mitigate potential exposures.
The updated regulations from the U.S. Environmental Protection Agency (EPA) take effect October 13, 2018, resulting in more stringent requirements for the construction, installation, operation, maintenance, testing and reporting of underground storage tanks, as well as training for tank operators.
New federal regulations include provisions for more spill-resistant tanks and piping, more frequent inspection and testing, as well as more extensive training and record-keeping. As part of the current regulations, tank owners must also demonstrate a minimum of $1m in financial responsibility for any site with greater than 100 tanks or with an output of 10 thousand gallons per month. Additional regulations and requirements vary on a state-by-state basis, making compliance a more complex process for tank owners and operators.
According to the EPA, the agency currently regulates more than 558,000 active underground storage tanks at an estimated 200,000 sites, and reports that 30 percent of tank owners and operators are deemed out of compliance.
“Tank operators must pay greater attention to compliance as a result of the new requirements being put into place by the U.S. Environmental Protection Agency,” said Bob Winterburn, Vice President, Chubb Environmental. “For these reasons, tank owners are purchasing insurance. In doing so, it is important for them to consider a comprehensive solution that engages best practices such as tank monitoring, operator training, risk mitigation, spill reporting technology and claims handling experience.”
“Smaller tank operators may be especially vulnerable if they lack risk management expertise. They may not have the financial resources or knowledge to adequately train their staff; maintain, monitor and register their tanks; or even properly report spills or leakages,” Bob continued.
For more information visit: the whitepaper and Chubb
13th September 2018
